This week, there has been significant market volatility, with the latest US Personal Consumption Expenditures (PCE) index meeting expectations. The PCE index, which is the Federal Reserve’s preferred inflation indicator, remained steady at 2.7% year-on-year in April, leading investors to speculate about future interest rate trends. In traditional markets, the S&P 500 index and the Dow Jones index rose by 0.80% and 1.51% respectively at the close, while the Nasdaq index remained unchanged.
According to comparative data, Bitcoin (BTC) rebounded in the morning to a high slightly above $69,000, then fell to a low of $66,595, before recovering to a support level of $67,600. At the time of writing, the BTC trading price was $67,559, with a 24-hour decrease of 1.16%.
The altcoin market saw mixed movements, with about one-third of the top 200 tokens by market capitalization experiencing gains, while the rest showed a downward trend. ConstitutionDAO (PEOPLE) performed strongly this week, rising by 12.5%, followed by Highstreet (HIGH) with a 10.1% increase, and Beam (BEAM) with an 8.35% increase. Enjin Coin (ENJ) experienced the largest decrease, falling by 10.3%, followed by Notcoin (NOT) with a 7.3% decrease, and Akash Network (AKT) with a 6.8% decrease.
The current total market capitalization of cryptocurrencies is $2.53 trillion, with Bitcoin’s market share standing at 52.8%.
Investors are focusing on the upcoming release of the national PMI report and employment report next week, as June’s US economic data could provide the next catalyst for Bitcoin. Analyst Stephen Alpher suggests that confirmation of a weak economic situation and prospects of lower interest rates could serve as a catalyst for Bitcoin’s attempt to break the historical high above $73,000 set in March. However, strong economic data could mean a retest of the low points in May.
Aurelie Barthere, Chief Research Analyst at Nansen.ai, emphasizes that inflation remains resilient. Barthere stated in a recent report that the market has already digested the impact of the Federal Reserve’s two interest rate cuts in 2024: “The longer we stay in this high-interest rate regime, the greater the downside risks.”
Barthere added, “A slowdown in growth is not good for cryptocurrencies. Meanwhile, we maintain a constructive stance on cryptocurrencies from a strategic standpoint but remain cautious about signs of weak growth.”
Adjustments are expected to continue. While many new investors have grown impatient with Bitcoin’s sideways movement over the past few months, some experienced investors believe this is a normal phenomenon in the bull market cycle and that what traders truly need is patience.
Market analyst ShardiB2 on X platform stated, “It is clear that the Bitcoin correction season is approaching. I think we are all tired of trying to catch these breakout opportunities and then watching it fall back again. This situation may continue for a few more months… Perhaps the best approach is to buy and hold, enjoying months of life without being affected by sharp drops.”
Ki Young Ju, the founder of CryptoQuant, points out that the recent price trend is similar to the Bitcoin atmosphere in mid-2020. Ki Young Ju analyzed, “At that time, the BTC price hovered around $10,000 for six months, with active on-chain transactions that were later confirmed to be off-exchange trades. Now, despite lower price volatility, on-chain transactions are still active, with $1 billion entering new whale wallets daily, possibly belonging to custodians.”
Michaël van de Poppe, founder of MN Trading, warns that if Bitcoin fails to break above $70,000, it could retrace to $60,000 in the coming months.
However, Captain Faibik believes that the breakout of the ascending triangle has been confirmed, and successfully retesting the support level could open up a bull market for 2024-2025.
Author: Mary Liu from Bitpush News.
Note: All articles from Bitpush represent the author’s viewpoint and do not constitute investment advice.